Pending Home Sales Tumble 7.7%

Pending Home Sales Tumble 7.7%

A forecasting gauge of housing-market activity fell more than twice as much as was expected in January as some buyers held off on home purchases.

The National Association of Realtors' index for pending sales of previously owned homes dropped 7.7% to 80.4 in January from 87.1 in December, the industry group said Tuesday.

Private analysts surveyed by Dow Jones Newswires had expected pending sales would fall 3.5%.

Mortgage Rates Hit Six Week High

Mortgage Rates Hit Six Week High

Mortgage rates rose over the past week, pushing the cost of borrowing to its highest level since Christmas. And volatility is expected to continue as the debate over the economic stimulus plan continues.

The average 30-year fixed mortgage rate rose to 5.70% from 5.48% for the week ended Feb. 4, according to Bankrate.com.

Taming Inflated Home Appraisals

Taming Inflated Home Appraisals

Washington policy makers have taken aim at one of the main contributing causes to the housing crisis: inflated appraisals.

When home prices were soaring, one of the driving factors was that appraisers, pressured by loan officers and mortgage brokers, kept hyping home values. Not only did homebuyers wind up paying more, but the exotic mortgage products they needed to finance their purchases later exploded, setting off the financial and economic turmoil the nation is facing today.